Uber Loses License In London Over Safety Concerns

By Yuliya Talmazan

LONDON - London’s transportation authority said Monday it would not renew Uber’s license to operate in the British capital over passenger safety concerns.

Transport for London said it identified "a pattern of failures" by the company, including several breaches that placed passengers and their safety at risk.

Uber promised to appeal the decision and operate "as normal" in London while the appeal process is underway.

A key issue identified was that a change to the ride-hailing company's systems allowed unauthorized drivers to upload their photos to other Uber driver accounts.

"This allowed them to pick up passengers as though they were the booked driver, which occurred in at least 14,000 trips, putting passenger safety and security at risk," the transport authority said in a statement.

This means all the journeys were uninsured and some passenger journeys took place with unlicensed drivers, Transport for London said Monday.

Another failure allowed dismissed or suspended drivers to create an Uber account and carry passengers. As a result, it has deemed Uber “not fit and proper at this time.”

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In an emailed statement to NBC News, Uber called the decision “extraordinary and wrong," and promised to appeal it.

The company also said that it has audited every driver in London over the last two months and will soon be introducing a new facial matching process for drivers.

Transport for London said it recognizes the steps that Uber has put in place to prevent safety breaches, but it "currently does not have e that Uber has a robust system for protecting passenger safety.

London Mayor Sadiq Khan tweeted to say that he supports the decision, adding that he welcomes technical innovation in the city, but companies have to “play by the rules” to keep customers safe.

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Transport for London said Uber now has 21 days to appeal the decision. It can continue to operate in the city until any appeal processes have been exhausted or withdrawn.

Uber’s future in London, one of its biggest global markets, was thrown into uncertainty in 2017 when the transport authority rejected its licence renewal request, saying that the company’s approach and conduct demonstrated “a lack of corporate responsibility” in relation to a number of issues that have potential public safety and security implications. Uber appealed the decision.

A British court granted Uber a probationary 15-month license in 2018 after convincing the judge that the company had made significant changes to its business and corporate culture.

In September, Transport for London gave Uber a two-month extension to “allow for scrutiny of additional information.” It also imposed new conditions on ride sharing, appropriate insurance and driver document checks.

In London, the San Francisco-based company has faced criticism from unions, lawmakers and the city’s black cab drivers.

Outside of the United Kingdom, Uber had faced regulatory battles in multiple U.S. states and around the world. It had also been embroiled in a long-running battle with its own drivers pushing for better workers’ rights.

Source: https://www.nbcnews.com/news/world/uber-loses-license-london-over-safety-concerns-n1090411

Travelore News: Uber Wins Key Victory In Fight To Stay In London. Uber Convinced A Judge That It Has Made Changes To Its Business And Corporate Culture. #Uber

The Uber app is open on a phone in front of one of London's black cabs.Simon Dawson / Reuters

London is giving Uber another chance.

The ride-hailing company received a 15-month probationary license from a British court on Tuesday, which will allow it to continue operating in London.

Uber was able to convince a judge that the company had made significant changes to its business and corporate culture after a local regulator, Transport for London, had declared the company not a “fit and proper” business.

Uber’s future in London, one of its biggest global markets, was thrown into uncertainty after Transport for London declined to renew its license last September and said the company’s “approach and conduct demonstrate a lack of corporate responsibility in relation to a number of issues which have potential public safety and security implications.” Uber was allowed to continue operating in London during the appeal process.

But over the past nine months, Uber has taken steps to clean up its act in the hope of winning back its license.

Tom Elvidge, general manager of Uber in the United Kingdom, said the company was “pleased” with the Westminster Magistrate’s Court decision on Tuesday and planned to continue working with Transport for London “to address their concerns and earn their trust, while providing the best possible service for our customers.”

In the United Kingdom, Uber is adding an around-the-clock support hotline for passengers and drivers, limits on driver hours and advisory groups, and taking steps to make sure drivers can use only Uber in the area where they are licensed, among other changes.

In a city known for its iconic black cabs, the prospect of London going without Uber proved to be particularly upsetting for the 3.6 million people who regularly use it in the city and the 45,000 licensed drivers who rely on Uber to help make a living.

One Change.org petition to “save Uber in London” racked up more than 850,000 signatures. After Uber’s license renewal was declined last year, Dara Khosrowshahi, who had recently become CEO, went to London to meet with regulators and drivers, and vowed to work together to help find a solution.

Uber has proven to be a valuable part of London’s infrastructure. The company said four in 10 trips start or end near a train station or London Underground stop, helping provide a solution for the first or last mile in getting between places.

Source: https://www.nbcnews.com/tech/tech-news/uber-wins-key-victory-fight-stay-london-n886706

Travelore News: Uber Stripped Of London License, Plans To Appeal #UBER

LONDON (Reuters) - London stripped Uber on Friday of its license to operate from the end of next week in a huge blow to the taxi service and 3.5 million users in one of the world’s wealthiest cities.

The capital’s transport authority said the Silicon Valley technology giant was not fit and proper to hold a private vehicle hire license and it would not be renewed when it expires on Sept. 30.

Uber, whose 40,000 drivers in London account for a third of private vehicles hired, said it would contest the decision and regulator Transport for London (TfL) will let it operate until the appeals process is exhausted.

”Uber’s approach and conduct demonstrate a lack of corporate responsibility in relation to a number of issues which have potential public safety and security implications,“ TfL said. ”TfL must also be satisfied that an operator is fit and proper to hold a license.

Specifically, TfL cited Uber’s approach to reporting serious criminal offences, background checks on drivers and software called Greyball that could be used to block regulators from gaining full access to the app.

“Transport for London and the Mayor have caved in to a small number of people who want to restrict consumer choice,” said Tom Elvidge, Uber’s general manager in London. “We intend to immediately challenge this in the courts.”

The loss of the license comes after a tumultuous few months for Uber, including a string of scandals involving allegations of sexism and bullying at the San Francisco-based start-up that forced out former CEO and co-founder Travis Kalanick.

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Uber, which is valued at about $70 billion and whose investors include Goldman Sachs, has faced protests around the world for shaking up long-established taxi markets.

The taxi app has also been forced to quit several countries, including Denmark and Hungary, and faced regulatory battles in multiple U.S. states and around the world.

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London’s traditional black cab drivers have attacked Uber, saying it has undercut safety rules and threatened their livelihoods. Uber has been criticized by unions and lawmakers too and been embroiled in legal battles over workers’ rights.

London police also complained in a letter published that Uber was either not disclosing, or taking too long, to report serious crimes including sexual assaults and this put the public at risk.

Uber said then its drivers passed the same rigorous checks as black cab drivers and it has always followed TfL’s rules on reporting serious incidents and it had a dedicated team that worked closely with London’s police.

London Mayor Sadiq Khan, a Labour politician who has criticized Uber in the past, said he backed the decision to reject its application for a new license.

“It would be wrong if TfL continued to license Uber if there is any way that this could pose a threat to Londoners’ safety and security,” he said.

Drivers of London’s black cabs, who have snarled up the city’s streets in protest at the app over the last few years, welcomed Friday’s decision.

“Their standards are not up to scratch,” said 71-year-old Walt Burrows, who has driven a black cab for 39 years. “The black cab is an iconic part of London. What you get with a black cab is a metered fare and you know you’re safe.”

Uber is likely to come under more fire next week when it appears in court to appeal a verdict that granted two of its drivers rights such as the minimum wage, the latest “gig economy” battle between firms lauding the flexibility enjoyed by self-employed drivers and unions accusing them of exploitation.

Uber has, however, announced a series of changes over the last few months to improve conditions for its drivers, including the introduction of in-app tipping and plans to increase some fees.

Alongside Uber’s drivers, some of London’s 3.5 million registered users expressed concern as to how TfL’s decision would affect their lives.

“It will definitely impact my life,” said 43-year-old event planner Rimi Char, who users the app at least once a week. “I have got used to the ease and cost effectiveness of using Uber and I’ve always had positive experiences.”

One of Uber’s British competitors in London, Addison Lee, is also awaiting a decision from TfL about a longer-term license. The company declined to comment on Friday.

Additional reporting by Michael Holden, Kylie MacLellan, James Davey, Elizaabeth O'Leary and Elaine Hardcastle; editing by Guy Faulconbridge/David Clarke